Consider purchasing an unlocked cell phone if you are on AT&T or T-Mobile and want a new Smartphone without a contract. Unlocked Smartphones allow you to subscribe to low cost carriers mentioned below and function internationally, so you can use the same phone abroad.

Important Information:

Unlocked GSM cellphones work on AT&T and T-Mobile in the USA and with 3rd parties like Straight Talk

About Apple iPhone 5:

The Apple iPhone 5 comes with a new faster Apple A6 processor (ironically made by Samsung) and runs on iOS 6. It has a a longer, larger 4" Retina display with a fingerprint-resistant oleophobic coating. Cnet calls the redesign "sharp, slim, and feather-light."

Apple iOS 6 includes a smarter Siri voice interface and Passbook, a digital wallet app for storing items such as gift cards, boarding passes and tickets.

However the iPhone 5's new improved Lightning connector makes older docks and chargers obsolete. On the plus side, the new connector is a bit smaller, a little more rugged and easier to use than the previous one.

Straight Talk, a prepaid carrier that is owned by Tracfone and Wal-mart, sells micro SIM cards for the that cost $14.99 + Free Shipping. You can pop these into any AT&T-compatible, T-Mobile-compatible, or unlocked GSM phone.

$45 a month buys you unlimited talk, text and data with no contract or credit check.